Adtran stock rises 10% following Craig-Hallum's buy rating initiation

Investing.com -- Adtran (NASDAQ:ADTN ), a communications equipment manufacturer, saw a 10% rise in its shares after Craig-Hallum initiated coverage of the company with a buy rating.

The firm also set a price target of $15 for Adtran's shares, citing an anticipated increase in customer spending in the coming years.

Craig-Hallum analyst Christian Schwab mentioned in a research note on Wednesday that Adtran is well-positioned to gain from ongoing customer initiatives to shift away from Chinese vendors, such as Huawei.

Schwab also noted that the company's efforts to reduce costs are expected to enhance its operating leverage.

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Source: Investing.com